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May 2017

Credit investor presentation

Investor presentation

Agenda

• Our business and strategy (slides # 5-14)

• Key metrics for credit investor (# 15-19)

• Potential bond transaction (# 20-21)

• Appendix – Q1 2017 and other materials (# 22-46)

Disclaimer

Credit Investor Presentation - May 2017 3

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engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities of the Company or any member of its group may

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Company and have not been independently verified

Company representatives

Petri

CastrénCFO

Pauliina

PaatelmaVP, Group Treasurer

Olli

TurunenVP, Investor Relations

Our business and strategy

Kemira todayKemira is a global chemicals company serving customers in water-intensive industries

Credit Investor Presentation - May 2017

2.4 Revenue in

EUR billion (FY 2016)

63Manufacturing sites

Pulp & Paper

#1–2 in all regions

12.8% Operative

EBITDA margin (FY 2016)

110 Ship-to-countries

Oil & Mining

#2 globally1

4 771 Personnel

2.2x Net debt / operative EBITDA

(FY 2016)

Municipal & Industrial

#1 in Europe and North

America2

61 Polyacrylamide polymers2 Raw and waste water treatment chemicals

Stable business and sustainable profitability improvement

Revenue EUR million

2,241 2,229

2,137

2,373 2,363

2012 2013 2014 2015 2016

Operative EBITDA and operative EBITDA marginEUR million

249 252 253

287303

2012 2013 2014 2015 2016


11.1% 11.3% 11.8% 12.1% 12.8%

Our strategy for profitable growth


Targets:

Above-market

revenue growth

& operative

EBITDA margin

of 14-16%

Growth• Investments in

capacity expansions

• Seize opportunities

in growth pockets

• Recovery of shale

oil & gas business

• CEOR and oil sands

• R&D, new products

AcquisitionsVery selective

approach

• Strategic fit

• Accretive to

profitability

• Modest valuation

Efficiency• Site footprint

optimisation

• BOOST

• Organizational

efficiencies with

new structure

Cost disciplinePrudent cost culture

Organic growth supported by selective acquisitions and efficient operations

Drivers for profitability improvement

Positives – Major company actions to

support profitability

• Synergy capture

• Full contribution of the new site in Brazil

• New chlorate line in Finland (Q4 2017)

• BOOST program (e.g. logistics)

• Capacity utilization

• Internal efficiency

Uncertainties

• Macroeconomic and political

uncertainties

• Raw material prices and currencies

Outlook for 2017: Kemira expects its operative EBITDA to increase from the prior year


253

287

303

2014 2015 2016

Operative EBITDA and operative EBITDA marginEUR million

11.8% 12.1% 12.8%

Our key actions for higher margins

2014 2015 2016 Acquisitionsynergies

Group Pulp & Paper BOOST -operationalexcellence

Oil & Mining Municipal &Industrial

Mid- to long-term target

Mid- to long-term targets: Above-the-market growth, operative EBITDA 14-16%, gearing below 60%


12.8%

Operative EBITDA

margin 14-16%

New

investments

(Brazil and

Finland),

New TCM

contracts

Optimization

of operations:

e.g. Logistics,

Sourcing,

Manufacturing

Chemical

Enhanced

Oil Recovery

&

oil sands

Advanced

Water

Treatment

11.8%Efficiencies

from new

two segment

structure

12.1%

Estimated end of 2017 run-rate 100% 100% Approx. 50% Low Low Low

Full run-rate by End of 2017 End of 2017 2018 2-3 yrs 3-5 yrs 3-5 yrs

AkzoNobel’s

paper

chemicals

business

Kemira to streamline segments and organisational structure

Oil & Mining and Municipal &

Industrial will merge into Industry

& Water as of June 1, 2017

Our focus continues to be on

pulp & paper, oil & gas, mining

and water treatment and we are

dedicated in serving these

customer industries

Cost savings of EUR 15-20

million with full run-rate by the

end of 2017

Revenue for oil & gas business

will be disclosed separately


Pulp & Paper

Operative

EBITDA

margin13.4%

Industry & Water

11.8%

In bleaching, process and

functional chemicals#1In water treatment chemicals in

Europe and North America#1

#2In dry and emulsion

polyacrylamides

Operative

EBITDA

margin

EUR 1,457 million

revenue

EUR 906 million

revenue

Segment figures as of FY2016

Geographies

Customer examples

Pulp & PaperFY2016: Revenue EUR 1,457 million, Operative EBITDA EUR 195 million and margin 13.4%


35%Americas

50%EMEA

15%APAC

Customer

mills

40%Board & tissue

production

40%Pulp production

10%Other

Note: Revenue by industry, product and geography rounded to the nearest 5%

20%Paper production

Products

10%Polymers

20%Defoamers,

dispersants,

biocides and other

process chemicals

25%Sizing &

strength

35%Bleaching

and

pulping

RevenueEUR million

Operative EBITDAEUR million

171195

48 46

2015 2016 Q12016

Q12017

1,417 1,457

362 372

2015 2016 Q12016

Q12017

Geographies

13

40%Americas

55%EMEA

5%APAC


10%Other applications

75%Water treatment

Application

split

15%Oil &

Gas

Municipal (40% of sales), customer examples

Industrial (60% of sales), customer examples


Industry & Water (effective as of June 1, 2017)*FY2016: Revenue EUR 906 million, Operative EBITDA EUR 107 million and margin 11.8%

EMEA

• Amsterdam

• Barcelona

• Berlin

• Frankfurt

• London

• Oslo

• Paris

• Stockholm

* Oil & Mining and Municipal & Industrial segments will be merged into Industry & Water segment

Americas

• Las Vegas

• Los Angeles

• Miami

• Montreal

• New York City

• Toronto

APAC

• Melbourne

• Shanghai

• Singapore

45%Coagulants

20%Other products such

as defoamers and

biocides

35%Polymers

Products

RevenueEUR million

Operative EBITDAEUR million

116107

25 23

2015 2016 Q12016

Q12017

956 906

220 238

2015 2016 Q12016

Q12017

Global trends favor Kemira

Kemira Capital Markets Day 2016 14

How Kemira benefits from the trend

Higher usage of

tissue, board and

paper

Increasing need for

packaging material

More chemicals

required for

stronger

paper/board

With chemistry

water can be

purified better

With polymers

increasing amount

of oil can be

extracted from

current and new oil

fields

Growing middle

class in Emerging

Markets

Online

shopping

Recycling Regulation driving

better water quality

Finding oil

reservoirs becoming

harder

Trends

Pic Pic Pic Pic Pic

Growing

middle class

in Emerging

Markets

Online

shopping

Recycling Regulation driving

better water quality

Finding oil reservoirs

becoming harder

Key metrics for creditinvestor

42% 42% 41%

54% 54%

59%

2012 2013 2014 2015 2016 Q1 2017

Balance sheet ratios and maturity profile


1.9x

Net debt / operative EBITDA and Gearing Gross debt maturity profile, end of Q1 2017 EUR million

2.1x

Net debt

532m

Net debt

661m

2.2x

Net debt

456m

Net debt

486m

2.1x

Gearing target below 60%

1.8x 2.2x

Net debt

634m

Net debt

642m

2017 2018 2019 2020 2021 2022

EIB NIB Bilaterals Existing bonds Undrawn RCF Others CP

144

83

210 205

150

400

Debt portfolio well diversified


• Gross debt EUR 792 million

• Cash and cash equivalents

EUR 132 million

• Average cost of debt 2.0%

41%

44%

15%

Loans from banks

and financial

institutions

EUR 327 million

Bonds

EUR 350 million

Other

EUR 115 million

• EUR 200 million at 2.5%,

maturing May 2019

• EUR 150 million at 2.25%,

maturing May 2022

Gross debt

EUR 792 million

Status as of March 31, 2017

176

200

74

248

271

2612

2012 2013 2014 2015 2016 Q12016

Q12017

Cash flow generation improving – H2 weighted

• Cash flow shows positive trend driven

by net working capital and improved

profitability

• Cash flow has strong seasonality

mainly due to changes in net working

capital


Cash flow from operationsEUR million

Cash flow

from operations

in 2014-2016

14%Q1

11%Q2

35%Q3

40%Q4

Capital expenditure – Investments into growth

Largest investments in 2015-2017

• New chlorate plant in Brazil

• New chlorate line in Joutseno, Finland

• Capacity additions due to acquisition of

AkzoNobel paper chemicals business

• Polymer capacity additions in Italy and UK

Capital expenditure excluding acquisitionsEUR million

In 2017 capital expenditure is expected to be approximately EUR 200 million


134 139 146

182

213

31 37

2012 2013 2014 2015 2016 Q12016

Q12017

CAPEX

split in

2014-201645%Expansion

27%Improvement

28%Maintenance

Potential bond transaction

Contemplated transaction


New issueIndicative terms and conditions

Issuer Kemira Oyj

Status Senior, unsecured

Amount EUR 200 million expected

Tenor 7 years

Coupon Fixed, annual

Documentation Stand-alone, under Finnish law

Covenants Change of control, Cross default, Negative

pledge (capital markets)

Clearing Euroclear Finland

Listing Nasdaq Helsinki

Denominations EUR 100,000 + 1,000

Bookrunners Nordea and OP

• Kemira is planning to issue a new 7 year

bond to partially refinance its senior

unsecured bond due in 2019 and the

remaining proceeds are planned to be used

for general corporate purposes

• The contemplated transaction size is

envisaged to be EUR 200m

• Indicative terms and conditions are subject

to market conditions

• Nordea is undertaking, on behalf of Kemira,

a tender offer of the 2019 notes in

conjunction with the envisaged new issue.

Tendering accounts are to receive priority in

the new issue allocation

• Tender price is 1,049.86 per EUR 1,000.00

in nominal amount of the Notes. Priority

allocation is available.

Appendix –Q1 2017

Financial highlights Q1 2017

Q1 2017

• Revenue increased +5%

– Organic growth +2%, Oil & Mining +16%

• Operative EBITDA was under pressure

– Sales volumes at good level but sales prices

below prior year level

– Sudden increases in ethylene and propylene

leading to higher raw material prices

– Supply distractions resulting in higher costs and

asset under utilization

• Earnings per share EUR 0.12

– EPS impacted by lower profitability but also by

higher items affecting comparability and finance

costs


EUR million (except ratios)

Q1

2017

Q1

2016 Δ%

Revenue 610 583 +5%

Operative EBITDA 69 73 -5%

of which margin, % 11.3 12.5

Operative EBIT 35 41 -15%

of which margin, % 5.7 7.0

Net profit to equity owners 18 25 -26%

EPS, EUR 0.12 0.16 -26%

• Stable market environment on broad scale

– APAC and South America driving growth, North America

sluggish while EMEA stable

– Supply shortage of chlorinated fatty acid hindering growth in

APAC

• Synergy capture from AkzoNobel’s paper chemicals

acquisition on track

– Two major manufacturing agreements left to terminate in Q2

– EUR 20 million synergy run-rate to be reached by the end of

year

• Largest investments have proceeded well

– New bleaching chemical plant in Brazil up and running flat out

– Expansion of sodium chlorate in Finland on schedule, expected

to be operational in Q4 2017

Pulp & Paper – Volume growth continued


Oil & Mining – Shale oil & gas market has rebounded

• Shale oil & gas fracking activity

continued to recover

– Volumes for polymers used in fracking

have doubled from the bottom

– Profitability remains under pressure due to

lower sales prices, product mix and higher

raw material prices

• Revenue for oil sands increasing,

business ramping up based on new

contracts

• CEOR field trial ongoing with one major

oil company


0

30

60

90

120

150

0

500

1,000

1,500

2,000

2,500

March 31: 824

9/2014: 1,931

5/2016: 404

US Oil & Gas Rotary Rigs WTI Oil Price ($/bbl)

2013 2014 2015 2016 1-3/17

Avg 1,761 1,862 978 509 742

Y-o-Y -8% +6% -47% -48% +46%

• With 6,000 municipal and 3,000 industrial customers stable

business to operate

• Volume growth of 3%, sales prices under pressure

• North American business improved performance due to

revenue growth and improved cost control

• Fire at Huntsman Pigments in Pori, Finland impacting

Kemira

– Raw material supplier to Municipal & Industrial for iron coagulant

production

– Sizeable customer to Pulp & Paper, main products electricity,

steam, caustic soda, and hydrochloric acid

Municipal & Industrial – Stable revenue development


400

450

500

550

600

650

Group’s organic revenue grew driven by Oil & Mining

Q1 2017 Results

Q1 2017

• Group’s organic growth 2%, volume growth increased to 5%

• Sales volumes grew in Oil & Mining more than 20%

• Operative EBITDA -5% to EUR 69 million due to lower sales prices and higher costs

• Fire at Huntsman Pigments in Finland impacting our financials in Q1 and in the future

66.474.7 78.2

68.072.8

78.9 80.8

70.0 69.0

12.0%

12.6%

12.5%11.3%

12.5%

13.4% 13.6%11.7% 11.3%

0

20

40

60

80

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017

Kemira Group revenue bridge Q1 2017EUR million

Operative EBITDA and operative EBITDA margin trendEUR million

Q1

2016

Q1

2017

M&ACurrency

impact

Sales

prices

Sales

volumes

583 +5% +2% 0% 610-3%

27April 26, 2017

315351

379 372 362 361 365 369 372

0

100

200

300

400

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017

Pulp & Paper – Revenue growth impacted by supply constraint and force majeure

Q1 2017 Results

• Force majeure, lower sales prices and chlorinated fatty acid shortage hindering revenue growth

• Profitability below prior year level due to lower sales prices and higher fixed costs

• Organic growth in APAC bounced back to good level despite the raw material supply issue,

South America also at mid-single digit growth

36.141.3

46.7 46.9 47.9 49.3 51.846.3 46.0

11.5% 11.8% 12.3% 12.6%13.2% 13.7% 14.2%

12.6% 12.4%

0

10

20

30

40

50

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017

Revenue and organic revenue growth (y-on-y)EUR million


+4% +5% +3% +2% +3% +1%

28

-4% -2%

April 26, 2017

0%

Oil & Mining – Strong demand in shale lifted revenue

94 90 9076 76 73

80 8290

0

20

40

60

80

100

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017

Q1 2017 Results

• Oil & Gas driving the segment’s revenue organic growth to 16%

– The improvement is mainly driven by higher sales volumes in shale oil & gas business

• Sales volumes in Mining grew at low double-digit rate

• Disappointing profitability caused primarily by delay in passing rising input costs to

sales prices

11.1 11.4

7.4

3.6

6.5

4.5 4.23.2

5.311.8%

12.7%

8.2%

4.7%

8.6%

6.2%5.3%

3.9%

5.9%

0

4

8

12

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017

Revenue and organic revenue growth (y-on-y) EUR million


-11% -20% -15% -25% -19% -17%

29

-12%

April 26, 2017

+5% +16%

Municipal & Industrial – Stable revenue development

145 154 156 152 145 154 151 146 148

0

40

80

120

160

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017

Q1 2017 Results

• Organic growth bounced back to growth driven by sales volume growth of 3%

• Profitability impacted by lower sales prices, currencies and higher fixed costs had

negative impact as well

• Solid cash flow generation continued

19.222.0

24.1

17.5 18.4

25.1 24.8

20.517.6

13.3%14.3%

15.5%

11.6%12.7%

16.3% 16.4%

14.0%11.9%

0

5

10

15

20

25

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2015 2016 2017

Revenue and organic revenue growth (y-on-y)EUR million


-1% +3% +2% +2% +1% +2%

30

-2%

April 26, 2017

-3% +1%

Input cost increase now visible

Changes in oil, propylene and ethylene pricesMarch 2017 vs. December 2016

Variable cost vs sales price trend


-150

-100

-50

0

50

100

150

200

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Brent oil, USD Sales prices* Variable costs*

* 12-month rolling change vs previous year in EUR million

12%

19%

-4%

-7%

68%

-5%

Ethylene

Propylene

Oil (Brent)

Ethylene

Propylene

Oil (WTI)

Euro

pe

US

Source: IHS and ICIS

Revenue and cost distribution per currency

• Currency exchange rates had EUR +1.6 million impact on the operative EBITDA in Q1 2017.

• Guidance: 10% change in our main foreign currencies would approximately have EUR 10 million

impact on operative EBITDA on an annualized basis

EUR

42%

USD

36%

CAD 4%

BRL 3%

CNY 3%

Others 12%

EUR

40%

USD

31%

CAD 5%

SEK 8%

CNY 5%

Others 11%

Kemira revenue distribution Q1 2017 Kemira cost distribution Q1 2017


Summary – Q1 2017


Strong revenue, profitability disappointing but we

are working on to improve profitability

BOOST moving forward with the roll-out of road

transportation

Major investments proceeding according to plans

Execution of new organisation underway –

operational as of 1 June

Appendix –Other materials

Key figures and ratios – 5-year summary

EUR million (except ratios) 2012* 2013 2014 2015 2016

Revenue 2,240.9 2,229.1 2,136.7 2,373.1 2,363.3

Operative EBITDA 249.4 251.9 252.9 287.3 302.5

of which margin 11.1% 11.3% 11.8% 12.1% 12.8%

Operative EBIT 155.5 164.2 158.3 163.1 170.1

of which margin 6.9% 7.4% 7.4% 6.9% 7.2%

Cash flow from operations 176.3 200.3 74.2 247.6 270.6

Capital expenditure, excluding acq. 134.1 133.5 140.6 181.7 212.6

Gearing at period-end 42% 41% 42% 54% 54%

Inventories 182 170 197 207 217

Personnel at period-end 4,857 4,453 4,248 4,685 4,818

* Restated figures reflect the change of IAS 19, Employee Benefits


Pulp & Paper

EUR million 2014 2015 2016

Revenue 1,170 1,417 1,457

Operative EBITDA 137.2 171.0 195.3

of which margin 11.7% 12.1% 13.4%

Operative EBIT 85.8 96.8 111.6

of which margin 7.3% 6.8% 7.7%

Capital expenditure 83.0 240.1 125.1

Cash flow after investing activities -10.1 -63.2 105.7

Key financials



Oil & Mining

EUR million 2014 2015 2016

Revenue 382.2 350.1 309.5



Operative EBIT 29.9 11.1 -3.8

of which margin 7.8% 3.2% -1.2%


Cash flow after investing activities 20.6 10.7 -19.9

Key financials



Municipal & Industrial

EUR million 2014 2015 2016

Revenue 564.7 605.7 596.5


of which margin 12.1% 13.7% 14.9%

Operative EBIT 43.3 55.2 62.3



Cash flow after investing activities 34.3 38.2 55.6

Key financials



Our customers and competitors

Customers (examples) Competitors (examples)


+ ~6000 municipalities in water treatment

39

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Geographies

Customers, examples

Oil & Mining (to be merged into Industry & Water)FY2016: Revenue EUR 310 million, Operative EBITDA EUR 18 million, margin 5.9%


65%Americas

35%EMEA

Customers40%Oil &

Gas35%Process

chemicals to

other industries

Products


25%Minerals &

Metals

60%Polymers

40%All others

40

Geographies

Customers, examples

Municipal & Industrial (to be merged into Industry & Water)FY2016: Revenue EUR 596 million, Operative EBITDA EUR 89 million, margin 14.9%


30%Americas

65%EMEA

5%APAC

Customer

split60%Municipalities

40%Industrial

customers

Products 65%Coagulants

20%Polymers

15%Other products

such as defoamers

and biocides

London

Frankfurt

New York City

ShanghaiSingapore

Los Angeles

Philadelphia

Montreal

Toronto

San Diego

Birmingham Miami

Melbourne

Hamburg

Amsterdam

Barcelona

Washington DC

Edinburgh Berlin

Paris Stockholm

Oslo Las Vegas


41

Income statement (IFRS)

EUR million 2016 2015

Revenue 2,363.3 2,373.1

Other operating income 5.1 7.1

Operating expenses -2,084.2 -2,116.4

Depreciations, amortizations and impairments -137.2 -131.2

Operating profit 147.0 132.6

Finance costs (net) -19.1 -30.8

Share of profit or loss of associates 0.1 0.3

Profit before tax 128.0 102.1

Income taxes -30.1 -24.9

Net profit for the period 97.9 77.2

Equity owners of the parent 91.8 71.0

Non-controlling interests 6.1 6.2

Earnings per share for net profit attributabe to the equity owners of the parent

company (EUR per share)

0.60 0.47


Balance sheet (IFRS)



Goodwill* 522 518

Other intangible assets 116 135

Property, plant and equipment 916 815

Shares and other investments 268 357

Inventories* 217 207

Receivables 409 411

Cash and cash equivalents 173 152

Total assets 2,621 2,595

Equity 1 183 1 193

Interest-bearing liabilities 807 794

Interest-free liabilities 631 608

Total equity and liabilities 2,621 2,595

* Key audit matter

Cash Flow statement (IFRS)



Net profit for the period 98 77

Total adjustments 187 189

Change in net working capital 30 21

Finance expenses -20 -27

Income taxes paid -23 -12

Net cash generated from operating activities 271 248

Purchases of subsidiaries and business acquisitions 2 -123

Capital expenditure -213 -182

Proceeds from sale of assets 37 3

Change in long-term loan receivables 1 0

Free cash flow 98 -54

Kemira – largest shareholders and Board of Directors

% of

shares

1. Oras Invest 18.2%

2. Solidium (owned by State of

Finland)16.7%

3. Varma Mutual Pension Insurance

Company5.3%

4. Ilmarinen Mutual Pension

Insurance Comp.2.7%

5. Kemira Oyj 1.9%

Total number of shares 155,342,557

Foreign ownership of shares 26.2%

Total number of shareholders 32,730

Shareholders on April 30, 2017 Kemira Board of Directors

Jari Paasikivi, Chairman

Member since 2012

Oras Invest Oy, CEO

Kerttu Tuomas

Vice Chairman

Member since 2010

Wolfgang Büchele

Member in 2009-2012

and since 2014

Kaisa Hietala

Member since 2016

Timo Lappalainen

Member since 2014


Shirley Cunningham

Member since 2017

45

Kemira’s Management Board


Pulp & Paper

Kim Poulsen

Operational

Excellence

Esa-Matti Puputti

Human Resources

Eeva Salonen

Industry & Water

Antti Salminen

CFO

Petri Castrén

CTO

Heidi Fagerholm

President and CEO

Jari Rosendal

46

Jukka Hakkila, Chief Legal Officer, acts as secretary of Management Board and Board of Directors

http://www.facebook.com/kemiragroup

http://www.facebook.com/kemiragroup

http://www.linkedin.com/company/7400

http://www.linkedin.com/company/7400

http://twitter.com/kemiragroup

http://twitter.com/kemiragroup

http://www.youtube.com/kemiragroup

http://www.youtube.com/kemiragroup

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